Samantha Smith, a consultant with D&Y, has just begun an engagement at Connect Airways, which is based in Canada. The company has fallen on hard times of late despite record profits for the rest of the airline industry. Management is somewhat set in its ways and could probably use some "new blood," as the most recent hire to the firm's executive team was 12 years ago. In Smith's first meeting with the team, Connect's chief executive officer commented that "all that mattered in this industry were load factors-the percentage of seats sold on scheduled flights. If load factors were adequate, everything else would take care of itself." Smith noted that while this measure was important, other, broader facets of operation were significant as well. She asked if any of the management team had heard of the balanced scorecard, and received dead silence as a response. Based on her experiences with other engagements, including two that involved airlines, Smith was convinced that the balanced scorecard could provide benefits in helping to solve Connect's woes. After a presentation about the philosophy of the balanced scorecard, Connect's management team accepted her idea, feeling that a shift in operating philosophy was needed for survival. Required: 1. What is a balanced scorecard, and what are the typical four key strategic key perspectives of balance scorecard? (3 marks) 2. Indicate four specific performance measures you would expect to see under each perspective in Connect Airways' balanced scorecard (8 marks) 3. What are the problems associated with Connect management's prior focus on only one measure (i.e., load factor)? (3 marks)